That is an understatement of what it does. I took some time to map the entire utility loop and some layers that most holders do not bother to look at at all.
Layer 1 -- Gas. The obvious one. Each operation at @Fogo Official is a fee charged in the native currency. However, the point that counts here is the following: the average fee that is paid is about 0.0000004. That is not a typo. Four tenth million dollars. On that level, gas is not an obstacle but it is virtually invisible to investors. It is even abstracted away by sessions to the point that the users do not see a gas prompt.
Layer 2 — Staking and security. The agents who are involved in consensus are the validators who stake tokens. $FOGO has a curated model, which implies that validators need to fulfill economic and operational criteria. The liquid staking protocol is called Brasa that allows holders to stake while remaining liquidated with a derivative token. Currently, there are approximately 20.4M that is staked on the set of validators.
Layer 3 — Ecosystem funding. Through grants, the Foundation funds and supplies builders with 27.58%. This is the aspect that has been overlooked by the majority of the people: projects that are funded by the Foundation give back value to the network in economic pacts. That is a vicious cycle - grants fund apps, apps create volume, volume causes fees, fees create more grants.
Layer 4 — Governance. The token holders are involved in the protocol decisions. In a vote-escrowed model, proportional voting power is given to longer lockups. This is meant to consolidate the control of governance by committed holders as opposed to short term speculators.
The scene that I pay the most attention to is Layer 3. The loop that makes token utility compounding instead of stationary is the one called the revenue-share loop. The flywheel supports itself in case Valiant, Ambient and Fogolend create sustained volume. In case volume remains thin, the loop halts no matter how great the architecture is.
That is what can be frankly judged. The token is not just a payment of gas but rather every layer requires materialization of real usage.
What is your opinion on utility layer that is important to long term #fogo value?